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News : Flat-rate pensions expected to begin during 2017

There has been a lot of news over the past few weeks about the government’s plans to introduce a flat-rate pension that will provide people with £144 per week. This will change as inflation increases, and it has now been revealed that experts predict the new pension will start from 2017.

Currently, state pension pays people £107.45 per week, and this can be increased with pension credit to £142.70. However, under the latest plans, people who reach pensionable age after 6th April, 2017 will be provided with a new flat-rate income. It is the largest overhaul in pensions for decades, and there has been a lot of debate, largely because there is no distinction between wealthy and poor pensioners. However, limited company contractors could be set to benefit because individuals usually get a lower state pension. In addition, over 1.5m pensioners do not even claim their pension credit, with the government suggesting that a flat-rate scheme would easily provide people with what they’re entitled to.

Trying to work out how much pension will be received is an ongoing concern for those who are heading towards retirement, and it is hoped that the new flat-rate income will make matters far simpler than ever before. For limited company contractors, knowing that at least £144 will be received will offer some comfort. Meanwhile, for those who are still concerned about their financial future, seeking out the help of professional accountants is a good idea, enabling people to carefully plan for their retirement years.